Pensions Act 1995

• (1) The trustees of any trust scheme must, except in any prescribed circumstances, keep any money received by them in a separate account kept by them with a deposit-taker.

• (1A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (2) Regulations may require the trustees of any trust scheme to keep—

• (a) records of their meetings (including meetings of any of their number), and

• (b) books and records relating to any prescribed transaction.

• (3) Regulations may, in the case of any trust scheme, require the employer, and any prescribed person acting in connection with the scheme, to keep books and records relating to any prescribed transaction.

• (4) Regulations may require books or records kept under subsection (2) or (3) to be kept in a prescribed form and manner and for a prescribed period.

• (5) Regulations must, in cases where payments of benefit to members of trust schemes are made by the employer, require the employer to make into a separate account kept by him with a deposit-taker any payments of benefit which have not been made to the members within any prescribed period.

• (6) If in the case of any trust scheme any requirements imposed by or under subsection (1) or (2) are not complied with, section 10 applies to any trustee who has failed to take all such steps as are reasonable to secure compliance.

• (7) If in the case of any trust scheme any person fails to comply with any requirement imposed under subsection (3) or (5), section 10 applies to him.

• (8) Where on making a payment of any earnings in respect of any employment there is deducted any amount corresponding to any contribution payable on behalf of an active member of an occupational pension scheme, the amount deducted is to be paid, within a prescribed period, to the trustees or managers of the scheme.

• (8A) “Deposit taker” means—

• (a) a person who has permission under Part 4A of the Financial Services and Markets Act 2000 to accept deposits;

• (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (c) the Bank of England ... ;

• (d) the National Savings Bank; or

• (e) a municipal bank, that is to say a company which was, immediately before the repeal of the Banking Act 1987 exempted from the prohibition in section 3 of that Act by virtue of section 4(1) of, and paragraph 4 of Schedule 2 to, that Act.

• (8B) Paragraphs (a) and (b) of subsection (8A) must be read with—

• (a) section 22 of the Financial Services and Markets Act 2000;

• (b) any relevant order under that section; and

• (c) Schedule 2 to that Act.

• (9) If in any case there is a failure to comply with subsection (8)—

• (a) section 10 applies to the employer; and

• (b) if the trustees or managers have reasonable cause to believe that the failure is likely to be of material significance in the exercise by the Authority of any of their functions, they must, except in prescribed circumstances, give notice of the failure to the Authority and the member within a reasonable period after the end of the prescribed period under subsection (8).

• (10) If in any case subsection (9)(b) is not complied with—

• (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (b) section 10 applies to any trustee or manager who has failed to take all reasonable steps to secure compliance.

• (11) If any person is knowingly concerned in the fraudulent evasion of the obligation imposed by subsection (8) in any case, he is guilty of an offence.

• (12) A person guilty of an offence under subsection (11) is liable—

• (a) on summary conviction, to a fine not exceeding the statutory maximum; and

• (b) on conviction on indictment, to imprisonment for a term not exceeding seven years or a fine or both.

• (13) A person shall not be required by virtue of subsection (9)(a) above to pay a penalty under section 10 in respect of a failure if in respect of that failure he has been—

• (a) required to pay a penalty under that section by virtue of section 3(7) of the Welfare Reform and Pensions Act 1999 (failures in respect of stakeholder pensions), or

• (b) convicted of an offence under subsection (11) above.

Record of winding-up decisions.

49A

• (1) Except so far as regulations otherwise provide, the trustees or managers of an occupational pension scheme shall keep written records of—

• (a) any determination for the winding-up of the scheme in accordance with its rules;

• (b) decisions as to the time from which steps for the purposes of the winding-up of the scheme are to be taken;

• (c) determinations under section 38;

• (d) determinations in accordance with the rules of the scheme to postpone the commencement of a winding-up of the scheme.

• (2) For the purpose of this section—

• (a) the determinations and decisions of which written records must be kept under this section include determinations and decisions by persons who—

• (i) are not trustees or managers of a scheme, but

• (ii) are entitled, in accordance with the rules of a scheme, to make a determination for its winding-up;

and

• (b) regulations may, in relation to such determinations or decisions as are mentioned in paragraph (a), impose obligations to keep written records on the persons making the determinations or decisions (as well as, or instead of, on the trustees or managers).

• (3) Regulations may provide for the form and content of any records that are required to be kept under this section.

• (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (5) Section 10 applies to any trustee or manager of a scheme who fails to take all such steps as are reasonable to secure compliance by the trustees or managers of that scheme with those obligations.

Resolution of disputes

Requirement for dispute resolution arrangements

50

• (1) The trustees or managers of an occupational pension scheme must secure that dispute resolution arrangements complying with the requirements of this section are made and implemented.

• (2) Dispute resolution arrangements are arrangements for the resolution of pension disputes.

• (3) For this purpose a pension dispute is a dispute which—

• (a) is between—

• (i) the trustees or managers of a scheme, and

• (ii) one or more persons with an interest in the scheme (see section 50A),

• (b) is about matters relating to the scheme, and

• (c) is not an exempted dispute (see subsection (9)).

• (4) The dispute resolution arrangements must provide a procedure—

• (a) for any of the parties to the dispute mentioned in subsection (3)(a)(ii) to make an application for a decision to be taken on the matters in dispute (“an application for the resolution of a pension dispute”), and

• (b) for the trustees or managers to take that decision.

• (4A) The dispute resolution arrangements may make provision for securing that an application for the resolution of a pension dispute may not be made to the trustees or managers unless—

• (a) the matters in dispute have been previously referred to a person of a description specified in the arrangements (“the specified person”) in order for him to consider those matters, and

• (b) the specified person has given his decision on those matters,

and for enabling the specified person's decision to be confirmed or replaced by the decision taken by the trustees or managers on the application, after reconsidering those matters.

• (5) Where an application for the resolution of a pension dispute is made in accordance with the dispute resolution arrangements, the trustees or managers must—

• (a) take the decision required on the matters in dispute within a reasonable period of the receipt of the application by them, and

• (b) notify the applicant of the decision within a reasonable period of it having been taken.

• (5A) In a case where a reference is made to the specified person in accordance with provision made under subsection (4A), subsection (5) applies in relation to the specified person as it applies in relation to the trustees or managers in a case where an application for the resolution of a pension dispute is made to them.

• (6) The procedure provided for by the dispute resolution arrangements in pursuance of subsection (4) must include the provision required by section 50B.

• (7) Dispute resolution arrangements under subsection (1) must, in the case of existing schemes, have effect on and after the date of commencement of this section in relation to applications made on or after that date.

• (8) This section does not apply in relation to an occupational pension scheme if—

• (a) every member of the scheme is a trustee of the scheme,

• (b) the scheme has no more than one member, or

• (c) the scheme is of a prescribed description.

• (9) For the purposes of this section a dispute is an exempted dispute if—

• (a) proceedings in respect of it have been commenced in any court or tribunal,

• (b) the Pensions Ombudsman has commenced an investigation in respect of it as a result of a complaint made or a dispute referred to him, or

• (c) it is of a prescribed description.

• (10) If, in the case of an occupational pension scheme, the dispute resolution arrangements required by this section to be made—

• (a) have not been made, or

• (b) are not being implemented,

section 10 applies to any of the trustees or managers who have failed to take all reasonable steps to secure that such arrangements are made or implemented.

Meaning of “person with an interest in the scheme”

50A

• (1) For the purposes of section 50 a person is a person with an interest in an occupational pension scheme if—

• (a) he is a member of the scheme,

• (b) he is a widow, widower , surviving civil partner or surviving dependant of a deceased member of the scheme,

• (c) he is a surviving non-dependant beneficiary of a deceased member of the scheme,

• (d) he is a prospective member of the scheme,

• (e) he has ceased to be within any of the categories of persons referred to in paragraphs (a) to (d), or

• (f) he claims to be such a person as is mentioned in paragraphs (a) to (e) and the dispute relates to whether he is such a person.

• (2) In subsection (1)(c) a “non-dependant beneficiary”, in relation to a deceased member of an occupational pension scheme, means a person who, on the death of the member, is entitled to the payment of benefits under the scheme.

• (3) In subsection (1)(d) a “prospective member” means any person who, under the terms of his contract of service or the rules of the scheme—

• (a) is able, at his own option, to become a member of the scheme,

• (b) will become so able if he continues in the same employment for a sufficiently long period,

• (c) will be admitted to the scheme automatically unless he makes an election not to become a member, or

• (d) may be admitted to it subject to the consent of his employer.

The dispute resolution procedure

50B

• (1) The procedure provided for by the dispute resolution arrangements in pursuance of section 50(4) must (in accordance with section 50(6)) include the following provision.

• (2) The procedure must provide that an application for the resolution of a pension dispute under section 50(4) may be made or continued on behalf of a person who is a party to the dispute mentioned in section 50(3)(a)(ii)—

• (a) where the person dies, by his personal representative,

• (b) where the person is a minor or is otherwise incapable of acting for himself, by a member of his family or some other person suitable to represent him, and

• (c) in any other case, by a representative nominated by him.

• (3) The procedure—

• (a) must include provision requiring an application to which subsection (3A) applies to be made by the end of such reasonable period as is specified;

• (b) may include provision about the time limits for making such other applications for the resolution of pension disputes as are specified.

• (3A) This subsection applies to—

• (a) any application by a person with an interest in a scheme as mentioned in section 50A(1)(e), and

• (b) any application by a person with an interest in a scheme as mentioned in section 50A(1)(f) who is claiming to be such a person as is mentioned in section 50A(1)(e).

• (4) The procedure must include provision about—

• (a) the manner in which an application for the resolution of a pension dispute is to be made,

• (b) the particulars which must be included in such an application, and

• (c) the manner in which any decisions required in relation to such an application are to be reached and given.

• (4A) The provision made under subsection (4)(c) may include provision for decisions of the trustees or managers to be taken on their behalf by one or more of their number.

• (5) The procedure must provide that if, after an application for the resolution of a pension dispute has been made, the dispute becomes an exempted dispute within the meaning of section 50(9)(a) or (b), the resolution of the dispute under the procedure ceases.

Indexation

Annual increase in rate of pension.

51

• (1) Subject to subsections (6) and (7) this section applies to a pension under an occupational pension scheme if—

• (a) the scheme—

• (i) is a registered pension scheme under section 153 of the Finance Act 2004, and

• (ii) is not a public service pension scheme, and

• (iii) in the case where the pension becomes a pension in payment on or after the commencement day, is not a money purchase scheme, and

• (b) the whole, or any part of, the pension is attributable—

• (i) to pensionable service on or after 6 April 1997, or

• (ii) in the case of money purchase benefits where the pension is in payment before the commencement day, to payments in respect of employment carried on on or after 6 April 1997, and

• (c) apart from this section—

• (i) the annual rate of the pension, or

• (ii) if only part of the pension is attributable as described in paragraph (b), so much of the annual rate as is attributable to that part,

would not be increased each year by at least the appropriate percentage of that rate.

• (1A) Where a pension scheme is divided into sections, each section that is a collective money purchase scheme for the purposes of Part 1 of the Pension Schemes Act 2021 (see section 1(2)(b) of that Act) is to be treated for the purposes of this section as a separate occupational pension scheme which is a money purchase scheme.

• (2) Subject to sections 51A and 52, where a pension to which this section applies, or any part of it, is attributable to pensionable service on or after 6 April 1997 or, in the case of money purchase benefits where the pension is in payment before the commencement day, to payments in respect of employment carried on on or after 6 April 1997—

• (a) the annual rate of the pension, or

• (b) if only part of the pension is attributable to pensionable service or, as the case may be, to payments in respect of employment carried on on or after 6 April 1997, so much of the annual rate as is attributable to that part,

must be increased annually by at least the appropriate percentage.

• (3) Subsection (2) does not apply to the annual rate of a pension under an occupational pension scheme, or to a part of that rate, if under the rules of the scheme the rate or part is for the time being being increased at intervals of not more than twelve months by at least the relevant percentage.

• (4) For the purposes of subsection (3) the relevant percentage is—

• (a) the percentage increase in the consumer prices index for the reference period, being a period determined, in relation to each periodic increase, under the rules, or

• (b) if lower, the default percentage for that period.

• (4ZA) Subsection (2) does not apply to the annual rate of a pension under an occupational pension scheme, or to a part of that rate, if subsection (4ZB) applies to the rate or part.

• (4ZB) Subject to subsection (4ZD), this subsection applies to the rate or part if, under the rules of the scheme, the rate or part is for the time being being increased, and since the relevant time has always been increased, at intervals of not more than twelve months by at least—

• (a) the percentage increase in the retail prices index for the reference period, being a period determined, in relation to each periodic increase, under the rules, or

• (b) if lower, the default percentage for that period.

• (4ZC) In subsection (4ZB) “the relevant time” means—

• (a) the beginning of 2011 or, if later, the time when the pension became a pension in payment, or

• (b) if the pension was transferred to the scheme from another occupational pension scheme as a pension in payment after the beginning of 2011, the time of the transfer.

• (4ZD) If the pension was transferred to the scheme as mentioned in subsection (4ZC)(b), subsection (4ZB) does not apply to the rate or part unless, immediately before the transfer, subsection (4ZB) (read with this subsection if relevant) applied to the rate or part by reference to the scheme from which the pension was transferred (or would have applied had subsection (4ZB) been in force immediately before the transfer).

• (4ZE) If only part of the pension is attributable to pensionable service or, as the case may be, to payments in respect of employment carried on on or after 6 April 1997, in subsections (3) to (4ZD) references to the annual rate of the pension are references to so much of that rate as is attributable to that part.

• (4ZF) For the purposes of subsections (4) and (4ZB) the default percentage for a period is the percentage for that period which corresponds to—

• (a) in the case of a category X pension, 5% per annum, and

• (b) in the case of a category Y pension, 2.5% per annum.

• (4ZG) In subsections (4) and (4ZB)—

• “consumer prices index” means—the general index of consumer prices (for all items) published by the Statistics Board, orwhere that index is not published for a month, any substituted index or figures published by the Board;

• “retail prices index” means—the general index of retail prices (for all items) published by the Statistics Board, orwhere that index is not published for a month, any substituted index or figures published by the Board.

• (4A) For the purposes of this section, a pension is a category X pension if it is—

• (a) a pension which became a pension in payment before the commencement day, or

• (b) a pension—

• (i) which becomes a pension in payment on or after the commencement day, and

• (ii) the whole of which is attributable to pensionable service before that day.

• (4B) For the purposes of this section, a pension is a category Y pension if it is a pension—

• (a) which becomes a pension in payment on or after the commencement day, and

• (b) the whole of which is attributable to pensionable service on or after the commencement day.

• (4C) For the purposes of applying this section in the case of a pension—

• (a) which becomes a pension in payment on or after the commencement day,

• (b) part of which is attributable to pensionable service before the commencement day, and

• (c) part of which is attributable to pensionable service on or after that day,

each of those parts of the pension is to be treated as if it were a separate pension.

• (5) Regulations may provide that any of the provisions of this section apply in relation to a pension as if so much of it as would not otherwise be attributable to pensionable service or to payments in respect of employment were attributable to pensionable service or, as the case may be, payments in respect of employment—

• (a) before 6 April 1997 or the commencement day,

• (b) on or after that day, or

• (c) partly before and partly on or after that day.

• (6) This section does not apply to any pension or part of a pension which is attributable (directly or indirectly) to a pension credit or which, in the opinion of the trustees or managers, is derived from the payment by any member of the scheme of voluntary contributions.

• (7) This section does not apply to any pension (or part of a pension) under a relevant occupational pension scheme which—

• (a) is a cash balance benefit (see section 51ZB), and

• (b) first comes into payment on or after the day on which section 21 of the Pensions Act 2011 comes into force.

• (8) An occupational pension scheme is a “relevant occupational pension scheme” if—

• (a) it has not, at any time on or after 6 April 1997, been a salary related contracted-out scheme (see section 7B of the Pension Schemes Act 1993), or

• (b) it has, at any time on or after 6 April 1997, been a salary related contracted-out scheme but no person is entitled to receive, or has accrued rights to, benefits under the scheme attributable to a period on or after that day when it was such a scheme.

Meaning of “the appropriate percentage”

51ZA

• (1) For the purposes of section 51(1)(c) and (2), “the appropriate percentage” in relation to an increase in the whole or part of the annual rate of a pension—

• (a) in the case of a category X pension, means the higher revaluation percentage for the latest revaluation period specified in the order under paragraph 2 of Schedule 3 to the Pension Schemes Act 1993 (revaluation of accrued pension benefits) which is in force at the time of the increase, and

• (b) in the case of a category Y pension, means the lower revaluation percentage for that period.

• (2) In this section “the higher revaluation percentage”, “the lower revaluation percentage” and “the revaluation period” have the same meaning as in paragraph 2 of Schedule 3 to the Pension Schemes Act 1993.

Meaning of “cash balance benefit”

51ZB

• (1) For the purposes of section 51(7)(a), a pension provided to or in respect of a member of an occupational pension scheme is a “cash balance benefit” if conditions 1 and 2 are met.

• (2) Condition 1 is that the rate of the pension is calculated by reference to a sum of money (“the available sum”) which is available under the scheme for the provision of benefits to or in respect of the member.

• (3) Condition 2 is that under the scheme—

• (a) there is a promise about the amount of the available sum, but

• (b) there is no promise about the rate or amount of the benefits to be provided.

• (4) The promise mentioned in subsection (3)(a) includes in particular a promise about the change in the value of, or the return from, payments made under the scheme by the member or by any other person in respect of the member.

• (5) The promise mentioned in subsection (3)(b) includes a promise that—

• (a) the amount of the available sum will be sufficient to provide benefits of a particular rate or amount;

• (b) the rate or amount of a benefit will represent a particular proportion of the available sum.

• (6) But a pension is not prevented from being a cash balance benefit merely because under the scheme there is a promise that—

• (a) the rate or amount of a benefit payable in respect of a deceased member will be a particular proportion of the rate or amount of a benefit which was (or would have been) payable to the member;

• (b) the amount of a lump sum payable to a member, or in respect of a deceased member, will represent a particular proportion of the available sum.

Restriction on increase where annuity tied to investments.

51A

• (1) No increase under section 51 is required to be made, at any time on or after the relevant date, of so much of any pension under a money purchase scheme as—

• (a) is payable by way of an annuity the amount of which for any year after the first year of payment is determined (whether under the terms of the scheme or under the terms of the annuity contract in pursuance of which it is payable) by reference to fluctuations in the value of, or the return from, particular investments; and

• (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (c) satisfies such other conditions (if any) as may be prescribed.

• (2) For the purposes of this section it shall be immaterial whether the annuity in question is payable out of the funds of the scheme in question or under an annuity contract entered into for the purposes of the scheme.

• (3) In this section “the relevant date” means the date appointed for the coming into force of section 51 of the Child Support, Pensions and Social Security Act 2000.

Restriction on increase where member is under 55.

52

• (1) Subject to subsection (2), no increase under section 51 is required to be paid to or for a member of a scheme whose pension is in payment but who has not attained the age of 55 at the time when the increase takes effect.

• (2) Subsection (1) does not apply if the member—

• (a) is permanently incapacitated by mental or physical infirmity from engaging in regular full-time employment, or

• (b) has retired on account of mental or physical infirmity from the employment in respect of which, or on retirement from which, the pension is payable.

• (3) The rules of a scheme may provide that if, in a case where a pension has been paid to or for a member under the age of 55 at an increased rate in consequence of subsection (2), the member—

• (a) ceases to suffer from the infirmity in question before he attains the age of 55, but

• (b) continues to be entitled to the pension,

any increases subsequently taking effect under section 51 in the annual rate of the pension shall not be paid or shall not be paid in full.

• (4) In any case where—

• (a) by virtue only of subsection (1) or (3), increases are not paid to or for a member or are not paid in full, but

• (b) the member attains the age of 55 or, in a case falling within subsection (3), again satisfies the condition set out in subsection (2)(a) or (b),

his pension shall then become payable at the annual rate at which it would have been payable apart from subsection (1) or (3).

Effect of increases above the statutory requirement.

53

• (1) Where in any tax year the trustees or managers of an occupational pension scheme make an increase in a person’s pension, not being an increase required by section 109 of the Pension Schemes Act 1993 or section 51 of this Act, they may deduct the amount of the increase from any increase which, but for this subsection, they would be required to make under either of those sections in the next tax year.

• (2) Where in any tax year the trustees or managers of such a scheme make an increase in a person’s pension and part of the increase is not required by section 109 of the Pension Schemes Act 1993 or section 51 of this Act, they may deduct that part of the increase from any increase which, but for this subsection, they would be required to make under either of those sections in the next tax year.

• (3) Where by virtue of subsection (1) or (2) any pensions are not required to be increased in pursuance of section 109 of the Pension Schemes Act 1993 or section 51 of this Act, or not by the full amount that they otherwise would be, their amount shall be calculated for any purpose as if they had been increased in pursuance of the section in question or, as the case may be, by that full amount.

• (3A) In subsections (1) and (2), the references to a person’s pension do not include any pension which is attributable (directly or indirectly) to a pension credit.

• (4) In section 110 of the Pension Schemes Act 1993 (resources for annual increase of guaranteed minimum pension)—

• (a) subsections (2) to (4) are omitted, and

• (b) in subsection (1), for “subsection (2) or (3)” there is substituted “ section 53 of the Pensions Act 1995 ”.

Sections 51 to 53: supplementary.

54

• (1) The first increase required by section 51 in the rate of a pension must take effect not later than the first anniversary of the date on which the pension is first paid; and subsequent increases must take effect at intervals of not more than twelve months.

• (2) Where the first such increase is to take effect on a date when the pension has been in payment for a period of less than twelve months, the increase must be of an amount at least equal to one twelfth of the amount of the increase so required (apart from this subsection) for each complete month in that period.

• (3) In sections 51 to 53 and this section—

• “annual rate”, in relation to a pension, means the annual rate of the pension, as previously increased under the rules of the scheme or under section 51,

• . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• “the commencement day” means the day appointed for the coming into force of section 278 of the Pensions Act 2004 (amendments to section 51),

• “pension”, in relation to a scheme, means any pension in payment under the scheme and includes an annuity.

Section 51: end of annual increase in GMP.

55

In section 109 of the Pension Schemes Act 1993 (annual increase of guaranteed minimum pensions)—

• (a) in subsection (2) (increase in rate of that part of guaranteed minimum pension attributable to earnings factors for tax year 1988-89 and subsequent tax years) for “the tax year 1988-89 and subsequent tax years” there is substituted “ the tax years in the relevant period ”, and

• (b) after subsection (3) there is inserted—

(3A) The relevant period is the period— (a) beginning with the tax year 1988-89, and (b) ending with the last tax year that begins before the principal appointed day for the purposes of Part III of the Pensions Act 1995

.

Minimum funding requirement

Minimum funding requirement.

56

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Valuation and certification of assets and liabilities.

57

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Schedules of contributions.

58

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Determination of contributions: supplementary.

59

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Serious underprovision.

60

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Sections 56 to 60: supplementary.

61

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Equal treatment

The equal treatment rule.

62

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Equal treatment rule: supplementary.

63

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Equal treatment rule: exceptions.

64

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Equal treatment rule: consequential alteration of schemes.

65

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Equal treatment rule: effect on terms of employment, etc.

66

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Treatment of overseas residents etc.

Prohibition on different rules for overseas residents etc.

66A

• (1) This section applies where an occupational pension scheme contains provisions contravening subsection (2) or (3).

• (2) Except so far as regulations otherwise provide, provisions of an occupational pension scheme contravene this subsection to the extent that they would (apart from this section) have an effect with respect to—

• (a) the entitlement of any person to benefits under the scheme, or

• (b) the payment to any person of benefits under the scheme,

which would be different according to whether or not a place outside the United Kingdom is specified by that person as the place to which he requires payments of benefits under the scheme to be made to him.

• (3) Except so far as regulations otherwise provide, provisions of an occupational pension scheme contravene this subsection to the extent that they would (apart from this section) have an effect with respect to—

• (a) the entitlement of any person to remain a member of the scheme,

• (b) the eligibility of any person to remain a person by or in respect of whom contributions are made towards or under the scheme, or

• (c) the making by or in respect of any person who is a member of the scheme of any contributions towards or under the scheme,

which would be different according to whether that person works wholly in the United Kingdom or wholly or partly outside the United Kingdom.

• (4) Provisions contravening subsection (2) shall have effect, in relation to all times after the coming into force of section 55 of the Child Support, Pensions and Social Security Act 2000, as if they made the same provision in relation to a person who requires payments of benefits to be made to a place outside the United Kingdom as they make in relation to a person in whose case all payments of benefits fall to be made to a place in the United Kingdom.

• (5) Provisions contravening subsection (3) shall have effect, in relation to all times after the coming into force of section 55 of the Child Support, Pensions and Social Security Act 2000, as if they made the same provision in relation to persons working wholly or partly outside the United Kingdom as they make in relation to persons working wholly in the United Kingdom.

• (6) This section—

• (a) shall be without prejudice to any enactment under which any amount is to be or may be deducted, or treated as deducted, from amounts payable by way of benefits under the scheme or treated as so payable; and

• (b) shall not apply in relation to so much of any provision of a scheme as is required for securing compliance with the conditions of any registration, exemption or relief given or available under the Tax Acts.

Modification of schemes

The subsisting rights provisions

67

• (1) The subsisting rights provisions apply to any power conferred on any person by an occupational pension scheme to modify the scheme, other than a power conferred by—

• (a) a public service pension scheme, or

• (b) a prescribed scheme or a scheme of a prescribed description.

• (1A) Any exercise of such a power to make a prohibited modification is void.

• (2) Any exercise of such a power to make a regulated modification is voidable in accordance with section 67G unless the following are satisfied in respect of the modification—

• (a) in the case of each affected member—

• (i) if the modification is a protected modification, or the scheme is a collective money purchase scheme within the meaning of Part 1 of the Pension Schemes Act 2021, the consent requirements (see section 67B),

• (ii) if sub-paragraph (i) does not apply, either the consent requirements or the actuarial equivalence requirements (see section 67C),

• (b) the trustee approval requirement (see section 67E), and

• (c) the reporting requirement (see section 67F).

• (3) The subsisting rights provisions do not apply in relation to the exercise of a power—

• (a) for a purpose connected with debits under section 29(1) of the Welfare Reform and Pensions Act 1999, ...

• (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (3A) Regulations may provide for cases in which the subsisting rights provisions do not apply.

• (4) References in this section and sections 67A to 67I to “the subsisting rights provisions” are to this section and those sections.

• (5) Subsection (6) applies in relation to the exercise of a power to which the subsisting rights provisions apply to make a regulated modification where a member of the scheme dies before the requirements mentioned in subsection (2), so far as they apply in his case, have been complied with in respect of the modification if—

• (a) before he died he had given his consent to the modification in accordance with section 67B(4)(b), or

• (b) before he died, or before the trustees of the scheme had become aware that he had died, the trustees had complied with section 67C(4)(a), (b) and (d) in respect of the modification in his case.

• (6) Any of the requirements mentioned in subsection (2), as it applies in respect of the modification—

• (a) which is satisfied in the case of the member, or

• (b) which would have been satisfied in his case had he not died before it was satisfied,

is to be taken to be satisfied in the case of any survivor of the member in respect of the modification.

The subsisting rights provisions: interpretation

67A

• (1) In the subsisting rights provisions, each of the following expressions has the meaning given to it by the following provisions of this section—

• “prohibited modification”

• “regulated modification”

• “protected modification”

• “detrimental modification”

• “affected member”

• “subsisting right”

• “scheme rules”.

• (1A) “Prohibited modification” means a modification of an occupational pension scheme which on taking effect would or might result in any subsisting right of—

• (a) a member of the scheme, or

• (b) a survivor of a member of the scheme,

which is not a right or entitlement to money purchase benefits becoming, or being replaced with, a right or entitlement to collective money purchase benefits under the scheme rules.

• (2) “Regulated modification” means a modification which is—

• (a) a protected modification, or

• (b) a detrimental modification,

or is both.

• (3) “Protected modification” means a modification , other than a prohibited modification, of an occupational pension scheme which—

• (a) on taking effect would or might result in a relevant transformation of any subsisting right of a member of the scheme or a survivor of a member of the scheme (see subsection (3A)),

• (b) would or might result in a reduction in the prevailing rate of any pension in payment under the scheme rules , other than a pension that is a collective money purchase benefit, or

• (c) is of a prescribed description.

...

• (3A) For the purposes of subsection (3)(a), there is a relevant transformation of a subsisting right where—

• (a) a subsisting right that is not a right or entitlement to money purchase benefits becomes, or is replaced with, a right or entitlement to money purchase benefits under the scheme rules,

• (b) a subsisting right that is a right or entitlement to money purchase benefits other than collective money purchase benefits becomes, or is replaced with, a right or entitlement to collective money purchase benefits under the scheme rules, or

• (c) a subsisting right that is a right or entitlement to collective money purchase benefits becomes, or is replaced with, a right or entitlement to money purchase benefits other than collective money purchase benefits under the scheme rules.

• (3B) For the purposes of subsection (3A), the reference in the definition of “money purchase benefits” in section 181(1) of the Pension Schemes Act 1993 to the widow, widower or surviving civil partner of a member of an occupational pension scheme is to be read as including any other survivor of the member.

• (4) “Detrimental modification” means a modification , other than a prohibited modification, of an occupational pension scheme which on taking effect would or might adversely affect any subsisting right of—

• (a) any member of the scheme, or

• (b) any survivor of a member of the scheme.

• (5) A person is an “affected member”—

• (a) in relation to a protected modification within paragraph (a) or (b) of subsection (3), if, at the time the modification takes effect, he is—

• (i) a member of the scheme, or

• (ii) a survivor of a member of the scheme,

and, on taking effect, the modification would or might affect any of his subsisting rights as mentioned in that paragraph,

• (b) in relation to a protected modification within paragraph (c) of that subsection, if he is of a prescribed description, and

• (c) in relation to a detrimental modification which is not a protected modification if, at the time the modification takes effect, he is—

• (i) a member of the scheme, or

• (ii) a survivor of a member of the scheme,

and, on taking effect, the modification would or might adversely affect any of his subsisting rights.

• (6) “Subsisting right” means—

• (a) in relation to a member of an occupational pension scheme, at any time—

• (i) any right which at that time has accrued to or in respect of him to future benefits under the scheme rules, or

• (ii) any entitlement to the present payment of a pension or other benefit which he has at that time, under the scheme rules, and

• (b) in relation to the survivor of a member of an occupational pension scheme, at any time, any entitlement to benefits, or right to future benefits, which he has at that time under the scheme rules in respect of the member.

For this purpose, “right” includes a pension credit right.

• (7) At any time when the pensionable service of a member of an occupational pension scheme is continuing, his subsisting rights are to be determined as if he had opted, immediately before that time, to terminate that service.

• (8) “Scheme rules”, in relation to a scheme, means—

• (a) the rules of the scheme, except so far as overridden by a relevant legislative provision,

• (b) the relevant legislative provisions, to the extent that they have effect in relation to the scheme and are not reflected in the rules of the scheme, and

• (c) any provision which the rules of the scheme do not contain but which the scheme must contain if it is to conform with the requirements of Chapter 1 of Part 4 of the Pension Schemes Act 1993 (preservation of benefit under occupational pension schemes).

• (9) For the purposes of subsection (8)—

• (a) “relevant legislative provision” means any provision contained in any of the following provisions—

• (i) Schedule 5 to the Social Security Act 1989 (equal treatment for men and women);

• (ii) Chapter 2 or 3 of Part 4 of the Pension Schemes Act 1993 (certain protection for early leavers) or regulations made under either of those Chapters;

• (iia) Chapter 1 or 2 of Part 4ZA of that Act (transfers and contribution refunds) or regulations made under either of those Chapters;

• (iii) Part 4A of that Act (requirements relating to pension credit benefit) or regulations made under that Part;

• (iv) section 110(1) of that Act (requirement as to resources for annual increase of guaranteed minimum pensions);

• (v) this Part of this Act (occupational pensions) or subordinate legislation made or having effect as if made under this Part;

• (vi) section 31 of the Welfare Reform and Pensions Act 1999 (pension debits: reduction of benefit);

• (vii) any provision mentioned in section 306(2) of the Pensions Act 2004;

• (xi) section 55 of the Pension Schemes Act 2015;

• (xii) regulations made under section 56 or 57 of the Pension Schemes Act 2015;

• (xiii) sections 21, 23, 26, 28, 29 and 33 of and Schedule 1 to the Pension Schemes Act 2017;

• (xiv) regulations made under section 18(4) of or paragraph 1(6) of Schedule 2 to the Pension Schemes Act 2021;

• (xv) sections 34, 39, 41, 42 and 45 of the Pension Schemes Act 2021;

• (b) a relevant legislative provision is to be taken to override any of the provisions of the scheme if, and only if, it does so by virtue of any of the following provisions—

• (i) paragraph 3 of Schedule 5 to the Social Security Act 1989;

• (ii) section 129(1) of the Pension Schemes Act 1993;

• (iii) section 117(1) of this Act;

• (iv) section 31(4) of the Welfare Reform and Pensions Act 1999;

• (v) section 306(1) of the Pensions Act 2004;

• (ix) section 55(3) of the Pension Schemes Act 2015;

• (x) regulations made under section 56(4) or 57(4) of the Pension Schemes Act 2015;

• (xi) sections 21(7), 23(7), 26(9), 28(6), 29(2) and 33(5) of and paragraph 1(7) of Schedule 1 to the Pension Schemes Act 2017;

• (xii) sections 18(7)(b), 34(5), 39(6), 41(6), 42(2) and 45(5) of and paragraph 1(7) of Schedule 2 to the Pension Schemes Act 2021.

• (10) For the purposes of this section—

• (a) “survivor”, in relation to a member of an occupational pension scheme, means a person who—

• (i) is the widow or widower of the member, or

• (ii) has survived the member and has any entitlement to benefit, or right to future benefits, under the scheme rules in respect of the member, and

• (b) a modification would or might adversely affect a person’s subsisting right if it would alter the nature or extent of the entitlement or right so that the benefits, or future benefits, to which the entitlement or right relates would or might be less generous.

• (11) In the subsisting rights provisions, in relation to—

• (a) the exercise of a power to modify an occupational pension scheme to which the subsisting rights provisions apply, or

• (b) a modification made, or to be made, in exercise of such a power,

references to “the scheme” are to be read as references to the scheme mentioned in paragraph (a).

The consent requirements

67B

• (1) References in the subsisting rights provisions to the consent requirements, in respect of a regulated modification, are to be read in accordance with this section.

• (2) The consent requirements apply in the case of an affected member—

• (a) if the modification is a protected modification;

• (b) if it is not a protected modification, unless the actuarial equivalence requirements apply in his case.

• (3) The consent requirements consist of—

• (a) the informed consent requirement (see subsection (4)), and

• (b) the timing requirement (see subsection (6)).

• (4) The informed consent requirement is satisfied in the case of an affected member if before the modification is made—

• (a) the trustees have—

• (i) given him information in writing adequate to explain the nature of the modification and its effect on him,

• (ii) notified him in writing that he may make representations to the trustees about the modification,

• (iii) afforded him a reasonable opportunity to make such representations, and

• (iv) notified him in writing that the consent requirements apply in his case in respect of the modification, and

• (b) after the trustees have complied with paragraph (a)(i), (ii) and (iv), the affected member has given his consent in writing to the modification.

• (5) If—

• (a) the modification is not a protected modification, and

• (b) before the modification is made the trustees notify an affected member in writing that—

• (i) if he gives his consent to the modification for the purposes of the consent requirements, those requirements apply in his case in respect of the modification, but

• (ii) otherwise, the actuarial equivalence requirements apply in his case in respect of the modification,

the trustees are to be taken to have complied with subsection (4)(a)(iv) in respect of him.

• (6) The timing requirement is satisfied in the case of an affected member if the modification takes effect within a reasonable period after the member has given his consent to the modification in accordance with subsection (4)(b).

The actuarial equivalence requirements

67C

• (1) References in the subsisting rights provisions to the actuarial equivalence requirements, in respect of a detrimental modification which is not a protected modification, are to be read in accordance with this section and section 67D.

• (2) The actuarial equivalence requirements apply in the case of an affected member only if—

• (a) the modification is not a protected modification, and

• (b) the trustees of the scheme determine that they are to apply in his case.

• (3) The actuarial equivalence requirements consist of—

• (a) the information requirement (see subsection (4)),

• (b) the actuarial value requirement (see subsection (5)), and

• (c) the actuarial equivalence statement requirement (see subsection (6)).

• (4) The information requirement is satisfied in the case of an affected member if before the modification is made the trustees have taken all reasonable steps to—

• (a) give him information in writing adequate to explain the nature of the modification and its effect on him,

• (b) notify him in writing that he may make representations to the trustees about the modification,

• (c) afford him a reasonable opportunity to make such representations, and

• (d) notify him in writing that the actuarial equivalence requirements apply in his case in respect of the modification.

• (5) The actuarial value requirement is satisfied in the case of an affected member if before the modification is made the trustees have made such arrangements, or taken such steps, as are adequate to secure that actuarial value will be maintained.

• (6) The actuarial equivalence statement requirement is satisfied in the case of an affected member if the trustees have, within a reasonable period beginning with the date on which the modification takes effect, obtained an actuarial equivalence statement relating to the affected member in respect of the modification.

• (7) For the purposes of subsection (6) “actuarial equivalence statement” means a statement in writing which—

• (a) is given by—

• (i) the actuary appointed in relation to the scheme under section 47(1)(b), or

• (ii) a person with prescribed qualifications or experience or who is approved by the Secretary of State, and

• (b) certifies that actuarial value has been maintained.

• (8) For the purposes of subsections (5) and (7) as they apply in relation to an affected member, actuarial value is maintained if the actuarial value, immediately after the time at which the modification takes effect, of the affected member’s subsisting rights is equal to or greater than the actuarial value of his subsisting rights immediately before that time.

The actuarial equivalence requirements: further provisions

67D

• (1) This section applies for the purposes of section 67C.

• (2) Where—

• (a) the information requirement has been satisfied in the case of an affected member in respect of a proposed modification (“the original modification”),

• (b) before the trustees have made a determination, or given their consent, for the purposes of section 67E(1) in relation to the original modification, the original modification has been revised, and

• (c) the modification as so revised (“the revised modification”) does not differ from the original modification in any material respect,

the information requirement is to be taken to have been satisfied in relation to the revised modification.

• (3) The trustees are to be regarded as having taken all reasonable steps to notify an affected member as mentioned in section 67C(4)(d) in respect of a modification if they have taken all reasonable steps to notify him in writing that—

• (a) if he gives his consent to the modification for the purposes of the consent requirements, those requirements apply in his case in respect of the modification, but

• (b) otherwise, the actuarial equivalence requirements apply in his case in respect of the modification.

• (4) Any calculation for the purposes of section 67C of the actuarial value of an affected member’s subsisting rights at any time must conform with such requirements as may be prescribed.

• (5) Requirements prescribed by regulations under subsection (4) may include requirements for any such calculation to be made in accordance with guidance that is prepared and from time to time revised by a prescribed body.

• (6) Nothing in subsections (6) and (7) of section 67C precludes actuarial equivalence statements relating to—

• (a) two or more affected members, or

• (b) affected members of any particular description,

in respect of a modification being given in a single document.

The trustee approval requirement

67E

• (1) For the purposes of section 67(2)(b), the trustee approval requirement is satisfied in relation to the exercise of a power to make a regulated modification if—

• (a) the trustees of the scheme have determined to exercise the power to make the modification, or

• (b) if the power is exercised by another person, the trustees have consented to the exercise of the power to make the modification,

and the making of the determination, or giving of consent, complies with subsections (2) and (3).

• (2) The trustees must not make a determination, or give their consent, for the purposes of subsection (1) unless, in the case of each affected member—

• (a) if the modification is a protected modification, the informed consent requirement is satisfied (within the meaning of section 67B), or

• (b) if it is not a protected modification—

• (i) the informed consent requirement is satisfied, or

• (ii) the information and actuarial value requirements are satisfied (within the meaning of section 67C),

in respect of the modification.

• (3) The trustees must not make a determination, or give their consent, for the purposes of subsection (1) more than a reasonable period after the first consent given by an affected member under section 67B(4)(b) in respect of the modification was given.

The reporting requirement

67F

• (1) For the purposes of section 67(2)(c), the reporting requirement is satisfied in relation to the exercise of a power to which the subsisting rights provisions apply to make a regulated modification if the trustees have, in accordance with subsection (2)—

• (a) notified each affected member in whose case the consent requirements apply in respect of the modification, and

• (b) taken all reasonable steps to notify each affected member in whose case the actuarial equivalence requirements apply in respect of the modification,

that they have made a determination, or given their consent, for the purposes of section 67E(1) in relation to the exercise of the power to make the modification.

• (2) The trustees must give (or, where the actuarial equivalence requirements apply, take all reasonable steps to give) the notification—

• (a) within a reasonable period beginning with the date of the determination or giving of consent mentioned in subsection (1), and

• (b) before the date on which the modification takes effect.

Powers of the Authority: voidable modifications

67G

• (1) Subsection (2) applies in relation to a regulated modification made in exercise of a power to which the subsisting rights provisions apply which is voidable by virtue of—

• (a) section 67(2), or

• (b) section 67H(3).

• (2) The Authority may make an order declaring that subsection (6) applies in relation to the regulated modification.

• (3) An order under subsection (2) relating to a regulated modification may also declare that subsection (6) applies in relation to—

• (a) any other modification of the scheme made by the exercise of the power mentioned in subsection (1), or

• (b) the grant of any rights under the scheme (whether by virtue of the attribution of notional periods as pensionable service or otherwise) in connection with the regulated modification.

• (4) An order under subsection (2) relating to a regulated modification must specify the affected member or affected members or description of affected members in respect of whom subsection (6) applies (“the specified persons”).

• (5) An order under subsection (2) relating to a regulated modification may also—

• (a) require the trustees to take, within the time specified in the order, such steps as are so specified for the purpose of giving effect to the order;

• (b) declare that subsection (7) applies in relation to anything done by the trustees after the time at which the modification would, disregarding the order, have taken effect which—

• (i) would not have contravened any provision of the scheme rules if the modification had taken effect at that time, but

• (ii) as a result of the modification being void to any extent by virtue of the order, would (but for that subsection) contravene such a provision.

This is without prejudice to section 174(3).

• (6) Where the Authority make an order declaring that this subsection applies in relation to a modification of a scheme, or the grant of any rights under the scheme, the modification or grant is void to the extent specified in the order, and in respect of the specified persons, as from the time when it would, disregarding the order, have taken effect.

• (7) Where, by virtue of subsection (5)(b), the Authority make an order under subsection (2) declaring that this subsection applies in relation to anything done by the trustees, that thing is to be taken, for such purposes as are specified in the order, not to have contravened any provision of the trust deed or scheme rules.

• (8) An order under subsection (2) relating to a regulated modification, or other modification, of a scheme or the grant of any rights under the scheme may be made before or after the time at which the modification or grant would, disregarding the order, have taken effect.

Powers of the Authority to intervene

67H

• (1) Subsection (2) applies where the Authority have reasonable grounds to believe that a power to which the subsisting rights provisions apply—

• (a) will be exercised, or

• (b) has been exercised,

to make a regulated modification in circumstances where the modification will be voidable by virtue of section 67(2).

• (2) The Authority may by order—

• (a) in a case within subsection (1)(a), direct the person on whom the power is conferred not to exercise the power to make the regulated modification;

• (b) require the trustees to take, within the time specified in the order, such steps as are so specified for the purpose of securing that any of the requirements mentioned in section 67(2) is satisfied.

• (3) A regulated modification made in exercise of a power to which the subsisting rights provisions apply is voidable in accordance with section 67G if—

• (a) the exercise of the power contravened an order under paragraph (a) of subsection (2), or

• (b) the trustees fail to comply with a requirement imposed by an order under paragraph (b) of that subsection relating to any exercise of the power to make the modification.

Subsisting rights provisions: civil penalties

67I

• (1) Subsections (2) and (3) apply where a regulated modification is voidable by virtue of section 67(2).

• (2) Where the modification was made by the exercise of a power—

• (a) by the trustees of the scheme, or

• (b) by any other person in circumstances which do not fall within subsection (3),

section 10 applies to any trustee who has failed to take all reasonable steps to secure that the modification is not so voidable.

• (3) Section 10 applies to any person other than the trustees of the scheme who, without reasonable excuse, exercises a power to make the modification if—

• (a) the trustees have not given their consent, for the purposes of section 67E(1), to the exercise of the power to make the modification, or

• (b) in the case of any affected member, the timing requirement is not satisfied (within the meaning of section 67B) in respect of the modification.

• (4) Where the trustees fail to comply with any requirement imposed, by virtue of subsection (5)(a) of section 67G, by an order under subsection (2) of that section, section 10 applies to any trustee who has failed to take all reasonable steps to secure such compliance.

• (5) Where a regulated modification is made by the exercise of a power in contravention of an order under section 67H(2)(a)—

• (a) if the power is exercised by the trustees, section 10 applies to any trustee who has failed to take all reasonable steps to secure that the order was not contravened;

• (b) section 10 applies to any other person who without reasonable excuse exercises the power in contravention of the order.

• (6) Where the trustees fail to comply with any requirement specified in an order under section 67H(2)(b), section 10 applies to any trustee who has failed to take all reasonable steps to secure such compliance.

Power of trustees to modify schemes by resolution.

68

• (1) The trustees of a trust scheme may by resolution modify the scheme with a view to achieving any of the purposes specified in subsection (2).

• (2) The purposes referred to in subsection (1) are—

• (a) to extend the class of persons who may receive benefits under the scheme in respect of the death of a member of the scheme,

• (b) to enable the scheme to conform with such arrangements as are required by section 241 of the Pensions Act 2004,

• (c) to enable the scheme to comply with such terms and conditions as may be imposed by the Board of the Pension Protection Fund in relation to any payment made by it under section 185 or 186 of the Pensions Act 2004,

• (d) to enable the scheme to conform with section 37(2), 76(2), 91 or 92,

• (da) to enable the scheme to accommodate persons with pension credits or pension credit rights, and

• (e) prescribed purposes.

• (3) No modification may be made by virtue of subsection (2)(a) without the consent of the employer.

• (4) Modifications made by virtue of subsection (2)(b) may include in particular—

• (a) modification of any limit on the number of, or of any category of, trustees, or

• (b) provision for the transfer or vesting of property.

• (5) Nothing done by virtue of subsection (2)(d), or any corresponding provisions in force in Northern Ireland, shall be treated as effecting an alteration to the scheme in question for the purposes of section 591B (cessation of approval) of the Taxes Act 1988.

• (6) Regulations may provide that this section does not apply to trust schemes falling within a prescribed class or description.

Grounds for applying for modifications: winding up registered schemes

69

• (1) The Authority may, on an application made to them by the trustees of a registered pension scheme which is being wound up, make an order—

• (a) modifying the scheme for the purpose of enabling assets remaining after the liabilities of the scheme have been fully discharged to be distributed to the employer, or

• (b) authorising the trustees to modify the scheme for that purpose.

• (2) But the Authority may act under subsection (1) only if prescribed requirements in relation to the distribution are satisfied.

• (3) Regulations may make provision requiring applications under subsection (1) to meet prescribed requirements.

• (4) Regulations may provide that in prescribed circumstances this section does not apply to schemes falling within a prescribed class or description or applies to them with prescribed modifications.

• (5) In this section “registered pension scheme” means an occupational pension scheme registered under section 153 of the Finance Act 2004 (other than a public service pension scheme).

Section 69: supplementary.

70

• (1) The Authority may not make an order under section 69 unless they are satisfied that the purposes for which the application for the order was made—

• (a) cannot be achieved otherwise than by means of such an order, or

• (b) can only be achieved in accordance with a procedure which—

• (i) is liable to be unduly complex or protracted, or

• (ii) involves the obtaining of consents which cannot be obtained, or can only be obtained with undue delay or difficulty.

• (2) The extent of the Authority’s powers to make such an order is not limited, in relation to any purposes for which they are exercisable, to the minimum necessary to achieve those purposes.

• (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Effect of orders under section 69.

71

• (1) An order under paragraph (b) of subsection (1) of section 69 may enable those exercising any power conferred by the order to exercise it retrospectively (whether or not the power could otherwise be so exercised) and an order under paragraph (a) of that subsection may modify a scheme retrospectively.

• (2) Any modification of a scheme made in pursuance of an order of the Authority under section 69 is as effective in law as if it had been made under powers conferred by or under the scheme.

• (3) An order under section 69 may be made and complied with in relation to a scheme—

• (a) in spite of any enactment or rule of law, or any rule of the scheme, which would otherwise operate to prevent the modification being made, or

• (b) without regard to any such enactment, rule of law or rule of the scheme as would otherwise require, or might otherwise be taken to require, the implementation of any procedure or the obtaining of any consent, with a view to the making of the modification.

• (4) In this section, “retrospectively” means with effect from a date before that on which the power is exercised or, as the case may be, the order is made.

Modification by Authority to secure winding-up.

71A

• (1) The Authority may at any time while—

• (a) an occupational pension scheme is being wound up, and

• (b) the employer in relation to the scheme is subject to an insolvency procedure,

make an order modifying that scheme with a view to ensuring that it is properly wound up.

• (2) The Authority shall not make such an order except on an application made to them, at a time such as is mentioned in subsection (1), by the trustees or managers of the scheme.

• (3) Except in so far as regulations otherwise provide, an application for the purposes of this section must be made in writing.

• (4) Regulations may make provision—

• (a) for the form and manner in which an application for the purposes of this section is to be made to the Authority;

• (b) for the matters which are to be contained in such an application;

• (c) for the documents which must be attached to an application for the purposes of this section or which must otherwise be delivered to the Authority with or in connection with any such application;

• (d) for persons to be required, before an application is made for the purposes of this section, to give such notifications of the making of the application as may be prescribed;

• (e) for the matters which are to be contained in a notification of such an application;

• (f) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (g) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (5) The power of the Authority to make an order under this section—

• (a) shall be limited to what they consider to be the minimum modification necessary to enable the scheme to be properly wound up; and

• (b) shall not include power to make any modification that would have a significant adverse effect on—

• (i) the accrued rights of any member of the scheme; or

• (ii) any person’s entitlement under the scheme to receive any benefit.

• (6) A modification of an occupational pension scheme by an order of the Authority under this section shall be as effective in law as if—

• (a) it had been made under powers conferred by or under the scheme;

• (b) the modification made by the order were capable of being made in exercise of such powers notwithstanding any enactment, rule of law or rule of the scheme that would have prevented their exercise for the making of that modification; and

• (c) the exercise of such powers for the making of that modification would not have been subject to any enactment, rule of law or rule of the scheme requiring the implementation of any procedure or the obtaining of any consent in connection with the making of a modification.

• (7) Regulations may provide that, in prescribed circumstances, this section—

• (a) does not apply in the case of occupational pension schemes of a prescribed class or description; or

• (b) in the case of occupational pension schemes of a prescribed class or description applies with prescribed modifications.

• (8) The times when an employer in relation to an occupational pension scheme shall be taken for the purposes of this section to be subject to an insolvency procedure are—

• (a) in the case of a trust scheme, while section 22 applies in relation to the scheme; and

• (b) in the case of a scheme that is not a trust scheme, while section 22 would apply in relation to the scheme if it were a trust scheme;

and for the purposes of this subsection no account shall be taken of modifications or exclusions contained in any regulations under section 118.

• (9) The Authority shall not be entitled to make an order under this section in relation to a public service pension scheme.

Modification of public service pension schemes.

72

• (1) The appropriate authority may make such provision for the modification of a public service pension scheme as could be made in respect of a scheme other than a public service pension scheme by an order of the Authority under section 69(1)(a).

• (2) In this section “the appropriate authority”, in relation to a scheme, means such Minister of the Crown or government department as may be designated by the Treasury as having responsibility for the particular scheme.

• (3) The powers of the appropriate authority under this section are exercisable by means of an order—

• (a) directly modifying the scheme (without regard, in the case of a scheme contained in or made under powers conferred by an enactment, to the terms of the enactment or any of its restrictions), or

• (b) modifying an enactment under which the scheme was made or by virtue of which it has effect.

• (4) Any such order may adapt, amend or repeal any such enactment as is referred to in paragraph (a) or (b) of subsection (3) as that authority thinks appropriate.

Supervision of winding-up

Reports to Authority about winding-up.

72A

• (1) Where—

• (a) an occupational pension scheme is being wound up, and

• (b) the winding-up is one beginning at a time (whether before or after the passing of this Act) by reference to which regulations provide that it is to be a winding-up to which this section applies,

it shall be the duty of the trustees or managers, in accordance with this section, to make periodic reports in writing to the Authority about the progress of the winding-up.

• (2) In the case of each winding-up, the first report to be made under this section shall be made—

• (a) except in a case to which paragraph (b) applies—

• (i) after the end of the prescribed period beginning with the day on which the winding-up began; and

• (ii) before the end of the prescribed period that begins with the end of the period that applies for the purposes of sub-paragraph (i);

and

• (b) in a case where the winding-up began before the coming into force of the regulations which (for the purposes of subsection (1)(b)) prescribe the time by reference to which the winding-up is one to which this section applies, before such date as may be prescribed by those regulations.

• (3) Subject to subsection (4), each subsequent report made under this section in the case of a winding-up shall be made no more than twelve months after the date which (apart from any postponement under subsection (4)) was the latest date for the making of the previous report required to be made in the case of that winding-up.